GERMAN FINANCE POLICY.

Press, Volume LXIII, Issue 19153, 9 November 1927, Page 11

GERMAN FINANCE POLICY.

COLLAPSE FEARED. REPARATIONS AGENT'S MEMORANDUM. (BT CABLE—PRESS ASSOCIATION—COPYRIGHT.) (AUSTRALIAN AND N.2. CABLE ASSOCIATION.) BERLIN, November 7. The Bourse promptly reacted to the publication of Mr Parker Gilbert's memorandum on Germany's financial policy, some shares losing over 30 points. Financial circles fear a collapse similar to that of Black Friday. [Some time ago Mr Parker Gilbert, agent-general for Reparations, addressed a memorandum to the German Government warning it against legislation and a loan policy, which would interfere with payments under the Dawes plan. The German Government recently published the memorandum and refuted the criticism that uncontrollable expenditure endangered Germany's economic life and the Dawes scheme. _ It contended that Germany was aiming at increasing her productiveness in order to improve the standard of living and fulfil her reparation obligations.]

BIG DROP IN SHARES. (AUSTRALIA* AND k.Z. CABLE ASSOCIATIOX.) (Received November. Bth, 7.30 p.m.) BERLIN, November 7. Glanzstoff artificial silk company shares fell from 561 reichmarken to 515, and the depression has been accentuated ,by the announcement that the German Steel Trust has expressed the opinion that Germany must reorganise her financial policy if economic industrial catastrophe is to b® avoided.

Higher wages and shorter hours are reducing profits, despite technical improvements in the coal, iron, and steel industries. Steel Trust shares are at the record low point of 95J reichmarken. Apparently the Trust is refraining from deciding on a dividend until it knows whether the eight hours' day will be introduced at New Year.

AMERICAN VIEW.

(AUSTRALIAN A*D N.Z. CABLE ASSOCIATION.) (Received November Bt.li, 8.30 p.m.) WASHINGTON. November 7. There is evidence here that the State Treasury Department is in full accord with Mr Parker Gilbert's warning to the German Government. It is understood the State Department policy of supervising loans floated in the United States by foreign interests would be employed to the full in the event of later 'developments transpiring as indicated, that the German Central and State Governments are 1106 prepared to effect the reforms which Mr Parker Gilbert feels are essential. Emphasis is laid by the Treasury Department 011 that position in Mr Parker Gilbert's statement which points out that there is still time for the readjustment of German financial policies t-o avert a crisis, and it is apparently hoped that Germany will accept the warning in the helpful spirit in which it is offered and set its fiscal house in order.